Inflation, Unemployment, and Well-Being: a behavioralist assessment of the inflation targeting regime

• Autor(a) principal: Pech, Wesley
• Data de Publicação: 2015
• Outros Autores: Milan, Marcelo
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Revista Paranaense de Desenvolvimento (Online)
• Texto Completo: https://ipardes.emnuvens.com.br/revistaparanaense/article/view/738
• topic: Inflación. Desempleo. Bienestar. Política monetaria. Economía comportamental.; Inflação. Desemprego. Bem-estar. Política monetária. Economia comportamental.

This article assesses the monetary policy rules of which defines inflation targeting regimes, especially its relation to the Philips short run curve, through the contributions of behavioral economics. The article is developed upon the use of the Phillips curve by monetary authorities in deriving the monetary policy rules of which is not taken into the account of important behavioral aspects as related to the perspective of the impacts of unemployment and inflation on subjective well-being. This omission may generate important implications which are relevant to the implementation of monetary policy by central bank, potentially causing levels of well-being to be inferior to the ones observed if information and social preferences regarding inflation and unemployment were considered. A simple theoretical model is developed to structure the problem and to serve as a reference point to broader public policy issues in association with the goal of reducing both inflation and unemployment.